Discuss how each of the following transactions will affect the financial ratios specified in the table (i. e. increase, decrease, no effect). You are required to provide the detailed explanations. (3 Marks)

Transaction	Ratio
1. Purchased inventory on credit.	Quick ratio
2. Collected an account receivable	Receivables turnover
3. Paid accounts payable.	Return on assets

Word limit: 150

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